New minimum standards for on-demand delivery workers: Is your contractor compliance framework ready?

The regulatory landscape for Australia’s gig economy has changed. From 17 August 2026, the Fair Work Commission’s Interim On-Demand Delivery Employee-Like Worker Minimum Standards Order (The Order) introduces legally enforceable requirements covering minimum pay, record keeping and a range of other protections and obligations.

For businesses operating digital labour platforms, reviewing contractor payment processes, systems, records and governance frameworks is now a compliance priority. The practical question is whether these arrangements are equipped to meet the new requirements.

Who is covered?

If you are a board member, executive or manager of a business operating a digital labour platform for on-demand delivery of food, drinks, alcohol or groceries, contractor compliance needs to be on your agenda. A practical question to ask your team is: can we demonstrate that our payment processes, systems and records meet the new requirements?

The Order applies to certain independent contractors engaged through a digital labour platform, such as an app or website, who mainly perform on-demand delivery of food, drinks, alcohol or groceries for immediate delivery. It also applies to the digital labour platform operators engaging those workers.

Importantly, these workers remain independent contractors rather than employees. The Order does not introduce employee entitlements such as overtime, penalty rates, annual leave or sick leave.

Minimum pay is now part of the compliance equation

One of the most significant changes is the introduction of a minimum safety net of pay based on workers' engaged time. Broadly, this runs from acceptance of an engagement until delivery is completed, subject to the Order’s exclusions and rules about overlapping engagements.

From 17 August to 31 December 2026, the applicable minimum hourly rates are:

• $31.30 per hour for workers using no vehicle, a pedal-powered bicycle, electric bicycle or electric scooter
• $31.50 per hour for workers using a combustion motorcycle or scooter
• $32.00 per hour for other eligible motor vehicles with a carrying capacity of up to one tonne.

The rates increase from 1 January 2027 to $31.80, $32.00 and $32.50 respectively, depending on vehicle type, and the Order provides for subsequent annual increases. From 1 January 2028 the rates would be adjusted annually in line with the National Minimum Wage increase. 

Top up payment

A top-up payment is required where a worker has been paid less than their earnings floor for the earnings period. Platform operators set an earnings period of up to 21 days. The earnings floor is calculated by multiplying the worker’s total hours of engaged time during that period by the applicable minimum rate.

For example, using the $31.30 hourly rate applicable from 17 August to 31 December 2026, a delivery worker using an electric bicycle who records 15 hours of engaged time in an earnings period would have a minimum earnings floor of $469.50. If the worker earned $450 during that same period, a $19.50 top-up payment would be required. The comparison depends on reliable underlying data and calculation methodology, with engaged time and earnings assessed for the same earnings period.

Getting ‘engaged time’ right

Under the Order, ‘engaged time’ is based on the platform’s records, from when a worker accepts an engagement until delivery is completed. Exclusions and rules for overlapping engagements affect how this time is calculated.

Time may be excluded for a vehicle breakdown, accident, break or another specified circumstance outside the platform operator’s control. Certain collection or delivery delays are also treated as non-engaged time under the Order.

To check your calculations, start with the information your platform records. Is it detailed and accurate enough to work out each worker’s engaged time and show how their minimum payment has been calculated?

A review can help you trace that information from the app through to the final payment, rather than checking payment rates alone.

Record keeping becomes critical

The Order also introduces specific record-keeping requirements. Platform operators must maintain certain records for seven years, including information relating to the platform operator and worker, account activation, service contracts and, where applicable, deactivation and the reasons for it.

For each earnings period, platform operators must also maintain and provide workers with records covering:

• gross and net payments
• deductions
• total engaged time
• non-engaged time and other time during which the worker was not engaged.

Record keeping is more than an administrative requirement. These records help platform operators demonstrate how payment outcomes have been determined.

Why reviewing compliance now matters

The Order is legally enforceable, and the Fair Work Ombudsman states that courts can impose penalties where covered businesses, individuals or other persons fail to comply with its rules. A practical review could consider:

1. Coverage and contractor population

• Which contractors and delivery activities fall within the Order?
• Are worker and vehicle categories appropriately captured?

2. Payments and calculations

• Are the correct minimum rates being applied?
• Are earnings floors and any required top-up payments calculated appropriately?
• Is engaged time being captured and calculated consistently with the Order?

3. Data and record keeping

• Are the prescribed records being captured and retained?
• Can payment outcomes be traced back to underlying engagement data?
• Can records be produced where requested?

These suggested review areas reflect the requirements outlined above. They are not a checklist prescribed by the Fair Work Ombudsman.

How BDO can help

For board members, executives and managers of covered digital labour platforms, the central governance question is whether your business can demonstrate that workers have received the required minimum payments. That means looking beyond the minimum rate to reliable engaged-time calculations, accurate top-up payments and records that explain payment outcomes. Review your systems, processes and controls now to identify potential gaps and prioritise corrective action.

BDO’s payroll advisory team can help you assess how your payment processes, systems and records address the requirements outlined in this article. Our support can include:

• Payment calculation reviews: Testing minimum rates, engaged-time calculations, earnings floors and top-up payments against agreed requirements
• Data and record-keeping reviews: Assessing data completeness, tracing payment outcomes to underlying engagement records and identifying gaps in record retention and reporting
• Processes, controls and governance: Reviewing how payment rules are implemented and maintained, with practical recommendations to strengthen controls and support management and board oversight
• Remediation support: Quantifying potential payment shortfalls and supporting corrective action where issues are identified, working alongside your legal advisers where required.

Not sure where to start? Contact our team to discuss a targeted review of your contractor payment arrangements. We can help you assess your payment calculations, supporting data and controls, and practical steps to address potential gaps.